The Central Bank Conducted an OMO on Friday in which it injected Rs.1,215.80 Billion into the market for 7 Days through a Reverse Repo. It received 28 quotes, ranging from 5.87% to 5.78%, for a total amount of Rs.1,218.80 billion of which the SBP accepted 27 quotes at 5.81%.
July 7, 2022 (MLN): The local equity witnessed a positive session today in an another range bound trading and the KSE-100 index gained 184 points.
Investors adopted a wait-and-see strategy in the consequence of expected upsurge in policy rate in today’s monetary policy and persistent depreciation of PKR against USD, a note by Darson Securities said.
The Index traded in a range of 387.46 points or 0.94 percent of previous close, showing an intraday high of 41,396.57 and a low of 41,009.11.
Of the 88 traded companies in the KSE100 Index 52 closed up 34 closed down, while 2 remained unchanged. Total volume traded for the index was 55.98 million shares.
Sectors propping up the index were Oil & Gas Exploration Companies with 74 points, Fertilizer with 41 points, Commercial Banks with 26 points, Oil & Gas Marketing Companies with 21 points and Technology & Communication with 12 points.
The most points added to the index was by OGDC which contributed 50 points followed by PPL with 42 points, FFC with 22 points, EFERT with 17 points and PSO with 16 points.
Sector wise, the index was let down by Power Generation & Distribution with 15 points, Refinery with 9 points, Pharmaceuticals with 3 points, Textile Composite with 3 points and Engineering with 2 points.
The most points taken off the index was by POL which stripped the index of 12 points followed by HUBC with 12 points, MARI with 6 points, ATRL with 6 points and LUCK with 5 points.
All Share Volume increased by 0.84 Million to 99.09 Million Shares. Market Cap increased by Rs.37.53 Billion.
Total companies traded were 310 compared to 308 from the previous session. Of the scrips traded 162 closed up, 126 closed down while 22 remained unchanged.
Total trades increased by 14,402 to 69,651.
Value Traded increased by 1.35 Billion to Rs.4.04 Billion
| Company | Volume |
|---|---|
| Lotte Chemical Pakistan | 7,320,260 |
| Oil & Gas Development Company | 5,795,311 |
| Sui Northern Gas Pipelines | 5,323,483 |
| Pakistan Refinery | 5,075,212 |
| Cnergyico PK | 3,520,874 |
| Agritech | 3,107,000 |
| Worldcall Telecom | 3,022,000 |
| Pakistan Petroleum | 2,833,319 |
| Nishat Chunian Power | 2,591,000 |
| K-Electric | 2,574,000 |
| Sector | Volume |
|---|---|
| Chemical | 14,566,485 |
| Refinery | 11,945,362 |
| Power Generation & Distribution | 11,588,137 |
| Technology & Communication | 9,806,863 |
| Oil & Gas Exploration Companies | 9,110,146 |
| Oil & Gas Marketing Companies | 7,686,401 |
| Cement | 4,912,322 |
| Food & Personal Care Products | 4,564,010 |
| Commercial Banks | 4,026,951 |
| Fertilizer | 3,146,120 |
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July 07, 2022 (MLN): In line with the increase in policy rate announced in the MPC meeting today, the State Bank of Pakistan (SBP) has moved up the markup rate for financing under Export Finance Scheme (EFS) and Long Term Financing Facility (LTFF) by 2.5% and 3% respectively.
Accordingly, the new rates for EFS and LTFF now stand at 10% each per annum.
“As foreshadowed in the last monetary policy statement, the interest rates on EFS and LTFF loans are now being linked to the policy rate to strengthen monetary policy transmission, while continuing to incentivize exports by presently offering a discount of 500 basis points relative to the policy rate,” the MPC statement read.
This combined action continues the monetary tightening underway since last September, which is aimed at ensuring a soft landing of the economy amid an exceptionally challenging and uncertain global environment, it added.
It should help cool economic activity, prevent a de-anchoring of inflation expectations and provide support to the Rupee in the wake of multi-year high inflation and record imports.
To recall, the SBP had increased the EFF and LTFF rates by 2% on May 23, right after the MPC announcement of a rate hike by 150bps to 13.75%.
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July 07, 2022: In line with the objective of creating a competitive and deep Exchange Traded Funds (ETFs) market, the Securities and Exchange Commission of Pakistan (SECP) has allowed various categories of mutual funds to invest in ETFs.
Through Circular No. 7 of 2022 dated July 5, 2022, these mutual funds have been allowed to invest up to 10% of their assets in equity ETFs, income ETFs and money market ETFs. As a result, now the mutual funds will have access to the benefits of investing in ETFs such as trading flexibility, diversification of portfolio and transparency of underlying holdings on a daily basis.
Earlier, the SECP had allowed equity-oriented mutual funds to invest in Equity ETFs only. Like equity ETFs, income ETFs and money market ETFs are also passively managed and traded on a securities exchange. Income ETFs allow ordinary investors to gain diversified and passive exposure to fixed income securities such as corporate bonds or government treasury in an inexpensive manner, while money market ETFs are similar to income ETFs albeit with higher portfolio credit rating requirements and shorter maturity of holdings.
Internationally, ETFs are among the fastest-growing investment products, customized to cover specific arrays of sectors, stocks, commodities, bonds, futures and other asset classes.
Press Release
July 07, 2022 (MLN): The Weekly Sensitive Price Indicator (SPI) for the Combined Group increased by 1.32% during the week ended July 06, 2022, said the Pakistan Bureau of Statistics (PBS) while breaking the tradition by announcing the weekly data on Thursday due to Eid Holidays ahead.
As per the PBS inflation report, the decline was mainly on account of an increase in the prices of food items and petrol and diesel.
The combined index clocked in at 200.53 compared to 197.92 on June 30, 2022.
The year-on-year trend depicts an increase of 33.66% when the index was recorded at 150.03 a year ago, on July 08, 2021.
Out of the 51 monitored items, the average price of 30 items increased that including garlic (5.06%), potatoes (2.57%), vegetable ghee 2.5 kg (1.64%), cooked daal (1.50%), wheat flour (1.46%), pulse gram (1.32%), tea prepared (1.09%) and pulse masoor (1.02%), petrol (6.36%), diesel (5.06%) and LPG (2.33%) while 5 items witnessed a decrease in prices and 16 items registered no change during the week.
The weekly SPI percentage change by income groups showed that SPI increased across all quantiles ranging between 0.83% and 1.51%.
The Lowest Income Group witnessed a weekly increase of 0.83% while the highest income group recorded an increase of 1.51%.
On a yearly basis, analysis of SPI change across different income segments showed that SPI increased across all quantiles ranging between 27.31% and 34.82%.
Yearly SPI for the Lowest Income Group increased by 27.31% while the highest income group recorded an increase of 34.82%.
The average price of Sona urea stood at Rs.2337 per 50 kg bag which is 8.45% higher than last week’s price and 33.85% higher when compared to last year.
Meanwhile, the average Cement price was recorded at Rs.1047 per 50 kg bag, which is 2.45% higher than the previous week and 60.58% higher than prices last year.
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